Rupee stays strong on euro surge, dollar inflows

Rupee stays strong on euro surge, dollar inflows

Mumbai: The rupee remained stronger in afternoon session on Wednesday aided by a rebound in the euro and continued corporate dollar inflows, traders said.

At 02:20pm, the partially convertible rupee was at 48.89/90 per dollar, stronger than Tuesday’s close of 49.065/075, after moving in a 48.7550-49.2150 band so far in the day.

The euro climbed to the session’s high of $1.3638 earlier in the day after a top EU official indicated more would be done to resolve the debt crisis but was vulnerable to selling in the absence of concrete steps to beef up region’s rescue fund.

Dollar inflows, mostly on account of a stake sale by India’s Reliance Capital in its insurance arm to Japan’s Nippon Life Insurance , helped the rupee, traders said.

Earlier in September, Reliance Capital had received regulatory approval to sell a 26% stake in the business to Nippon Life, and had said the deal was likely to close in a few weeks.

The index of the dollar against six major currencies was at 77.684 points from 77.911 at end of local trade on Tuesday.

The local benchmark share index partially recovered losses and was trading down 0.59% at 16,427.15 points. It had touched a low of 16,372.64 point earlier in the day.